LUFKIN, TX (KTRE) - By Holley Nees - email
LUFKIN, TX (KTRE) - Building a house without a customer is a risk the City of Lufkin is trying to get builders to take.
"Contractors who wish to build spec homes within the city of Lufkin are able to apply for an incentive where they would receive money back at the end of the project," City Inspector Dale Allred said.
"Anything will help and of course the financial institutions are going to have to turn loose of some money before we can start advancing these homes," said Gene Caldwell, owner of Caldwell & Loper Custom Homes.
Builders who own a lot in Lufkin and construct a spec house are eligible for $3,000 to $5,000 upon completion, depending on the cost of the house.
"Really what council was trying to attract is those builders who are building outside the city limits," Allred said.
It's designed to stimulate the local economy by creating a domino effect.
"We're going to put framers to work, we're going to put plumbers, electricians to work, heating and air conditioning contractors to work and of course our local building supply companies are going to sell those materials that go into the home," Allred said.
One building material company owner says although he won't get the incentive money directly, he reaps the benefits thru programs like this.
"You know it increases production for everyone, from framers to plumbers, to electricians, and of course the countertop people," said Jack M. Greene, owner of Angelina Bath & Custom Marble.
The city says they're not just giving the money away.
"At some point and time, four to five years down the road, the amount of money paid out in the incentive will come back to the city in tax revenue," Allred said.
The program could lay the foundation for a better economy.